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tv   Close Up  CSPAN  September 16, 2011 7:00pm-8:00pm EDT

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low as they have been since the cost of what not only what we great depression. nonetheless too few borrowers have been able to take advantage estimated in the nasa authorization act, but less. of low-interest rates to refinance their mortgage. the cost of the rocket over a unable to refinance their debt five to six year period in the the way corporations have nasa authorization bill was to consumers are left with weak balance sheets and mortgage payments often above the cost of be no more than $11.5 billion. renting contributing to ask us access to liquid seas, foreclosures and falling home this cost is $10 billion for the prices. numerous frictions contribute to the slow rate of refinancing. rocket. the projected cost for the the gst charge upfront fees for refinancing mortgage for capsule or what they call the borrowers with moderate credit in the loan-to-value ratio, 60% or more. mpcv, the multipurpose crew lender fears of litigation from vehicle, in that time frame is reps and warranties further discourage refinancing. $6 billion. many borrowers are underwater. and then the reworking of the support to launch the new rocket a streamlined refinancing program could benefit 25 million and its facilities in the or more borrowers with government-backed mortgages. decreasing in animal mortgage modernization of those facilities is about $2 billion payments by 70 billion, over that time, or a total of $2,800,000,000,000 per year per barbara to the majority whose $18 billion in that period of
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original mortgage was under $200,000. time up to 27 teen. this plan would function like a long-lasting middle-class tax i'd like to show you what the cut without impacting the budget deficit. a copy of this proposal made new rocket looks like. with co-authors allen and glenn cupboards are are a testament test my lawn with a state-by-state breakdown of benefits under this program. under our plan every homeowner this rocket has a core that is a with a gse or fha or va mortgage and refinance its mortgage and the current fixed rate of 4.2% turgid of the external tank, the or less with a rates subject to april caught colored external changes in the market price of bonds so it is a market rate. tank. at jj borrowers with a slightly the old external tank would come higher rates. to about here in the stack of to qualify the homeowner must be current on his or her mortgage the space shuttle to give you an or becomes so for at least three months. estimate of size. this plan rewards responsible borrowers. this is the smaller version of these must be low cost minimal this rocket. paperwork refinances, no this is in the range of the 70- appraisals, no income verification and no tax returns and a minimal title insurance 77 ton. policy. after all the government already guaranteed these mortgages. the old external tank would have issuers of new mortgages would be indemnified against other come to about here so you think
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reps and warranties violations, the inside stack of the space critical part of this program. shuttle being about this high underwear plan to gses which are to guaranteed fee of 40 you see the relative size of the basis points per year, more than offsetting any losses they might rocket. face. to gses would benefit through fewer defaults by borrowers with lower mortgage rates. [inaudible] our plan would pay 30 basis points to cover the costs originating service a new loan competition for these boosters mortgages and making it possible to be solid. for janitors and servers is given the stream -- making it profitable for originators and there'll be five shuttle agents services given the streamlined process. at the plan must be attracted to and on top of the core then and market participants. servers you should have a sharp there is a second stage of its ear a time to offer this program to customers on an exclusive older the underdevelopment, and basis but only a short time. existing servicers including the largest banks benefit by lower then of the crew launched go on legal liabilities associated top with the east cape system, with drops and warranties and what this does is -- you violations. home-equity lines of credit are safer when borrowers have lower remember in the aftermath of the mortgage payments. bank should find streamlined destruction of the space shuttle refinancing to increase both
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profits and customer satisfaction. columbia, the commission said mortgages and second lien holder should be ricard to modify policies and claims to you fly the shuttle just as long facilitate this plan. as you have to in order to build the housing market benefits the space station because of the program lower mortgage payments components that were designed to reduce future defaults helping fit into the cargo. stabilize house prices. you build the space station and replace it with a safe rocket. that's what they're doing on the reducing financial pressure on commercial rockets and that's servicers originators and how this is designed. mortgage insurers will help the with the crew on the top of the mortgage market start to recover enabling new homebuyers to get rocket with the ability to mortgages. most gains from this plan, the expense of investors who escape. on the path if there is an understood and accepted interest explosion as well as all the rate risks. private sector foreign owners hold about two-thirds of gse way. bonds. agency bondholders have received so i can't say enough good unanticipated windfall from many government actions during the things about the lady that is crisis including policies that standing here next to me. led to extremely low refinancing kay bailey hutchison has truly rate, the decision to explicitly been a leader not only in our guarantee gse bonds against losses and the federal reserve's purchase of $1.25 trillion of space committee but now as the ranking member of the full
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agency mortgage-backed committee, and she large part securities. even with potential losses some bondholders such as:have supported this plan because of its benefits to the economy. has brought us to this day. implementing this proposal would have a tremendous effect on make kay is going to speak in a minute, but we want the a real difference on families. explanation of the entire system until we fix the housing market will be hard for the economy to to come from the number one recover. i have also responded to put person at nasa, the administrator of nasa, general forward a proposal to the rfi and a very much supported number charlie bolden. of the other proposals that >> thank you, senator. people on this panel and as i am wont to do, i have a previous panel had made disclaimer to start with. including the expansion of private institutional capital for rental, encouraging efforts, since i am the administrator and not the expert at nasa, there is such evers to have local partners and to provide a press ability that i think 11: responsible financing for investors who are going to come in and help absorb some of the excess inventory. 30 where bill and the team that is responsible for putting i also think there are many the team together will be things that one could do with available to answer specific shared appreciation mortgages questions about the configuration of the schedule and everything else. and one idea that i will toss out to add to the mix is the so i would defer to them. i'm going to give you a message idea of not necessarily applying that i think is important and a it to one mortgage but have been message on want you to take to payback gains from other the american public as well as
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residential property over time our international partners, and which might make those banks i do want to thank all the members of the congress. shared appreciation mortgage the senator is absolutely right. i don't want to get in trouble safer for the lenders who do it here, but i think the queen bee and bring it closer to kind of i and all of this has been senator think a cost-effective basis so i think there is a lot of hutchinson. positive to do here so i she's a mother opposite william appreciate the opportunity and like me, so we have been worried would be happy to answer like five years in texas and questions. >> thank you all very much. tampa allen so we don't always it is a broad swath of ideas. let me start off taking off of disagree on things. the latest chapter of america's your suggestion mr. mayer and space exploration story is being asking the panel in the broadest written today. today i'm pleased to announce nasa has selected to design its broadest -- is met at the end of the day i look at this and i say new deep space system that will well, who is the biggest holder take american astronauts further of a major part of a significant into space than any nation has part of the liability here? gone before and create jobs fannie and freddie and who is right here at home. private companies are preparing fannie and freddie? to take over transportation to it is the american taxpayer at the end of the day, so would it the international space station make sense for fannie and in low-earth orbit. freddie to seek initiatives that satellites are on their way to mitigate the potential of its jupiter and the moon and plans for human mission to an asteroid losses, and help us move into and on to mars are taking shape. the mortgage market. in combination with the crew
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so that is a broad come position capsule already under but i just don't get the sense development, commercialization faster not travel to low-earth that is where fannie and freddie are headed at least in this or bet, extension of the activities of the international point of time. are their observations about space station and a fresh focus that? on new technologies, the launch in am i wrong on this? >> i think, like everything we system, or sls is key to have talked about here senator, implementing the plan laid out as you are well aware of and the president obama laden have been actively engage these congress and the bipartisan 2010 questions are a lot more complicated than the answer. nasa authorization act. the answers are more competent the sls will be the cornerstone than the question. of our sls to an exploration the challenge of fannie and freddie is they still are program. president obama challenge essentially independent companies and conservatorship. josette nasa to be bold and they have cost the taxpayers dream big and that is exactly what we do. while i was proud to fly on the $150 billion. it is acknowledged at least by space shuttle, tamara's their conservator that they were explorers will dream of one day underpriced in a guarantee fees when they originated these loans walking on mars. the selection of the vehicle and so i think the trade-off we needed to transport our have to consider as we utilize astronauts into deep space is these two agencies which are one of the most important decisions to be made this critically important obviously considering the size and scope decade, and it requires a major commitment on the part of the of the housing market is clearly american taxpayer. and that's why the recognizing with eyes wide open, administration insisted on giving the due diligence that anything they would do to required so that we could get it
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participate more aggressively, right. but we have also been making whether it is lowering loan steady progress toward realizing level price adjusters are changing loan-to-value requirements are reducing the president's and converse' documentation or relieving reps and warrants are all the things being discussed, if those are vision of deep-space exploration while doing so in a more affordable way. we've been driving down the cost all bring incremental risk associated with each of those on the zero rollin and sls contracts by adopting new ways steps. as long as that is acknowledged of doing business, and that and recognized in the process, i she's hundreds of millions of dollars of savings each year. think the decisions can be made. we are also changing the way we i think it is difficult however spend the taxpayers' money by because they are and conservatorship and there is no providing more transparency and increasing competition. clear direct governance capability here that it makes it much more difficult to direct we are handing off transportation to the them to take action which may not be in their own best international space station to our private sector partners so interest especially at a time we can focus on deep-space when they are trying to bring themselves back to a level of exploration. we are already building a space operating profitability. >> i would assume the capsule, the mpvc to transport conservatorship ultimately goal is to maximize or limit the them into deep space. not yet selected a rocket to carry the current council to scope of the liabilities at the end of the day. destinations in space nations have ever gone before. and it just seems to me that you our decision to go where the have this you know, stated liquid hydrogen, liquid oxygen, public policy goal of trying to launching vehicle system was limit the liabilities and get
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based on nasa's analysis to not being able to do some of the things that are essential to reduce costs, increase limit those liabilities. flexibility and leverage the >> are absolutely right. u.s. leadership in this technology. even the cbo, which is i'm sure the development flights will to get feige of existing boosters not the most detailed at this and other hardware while point because we don't know what companies compete for advanced the proposed specifics of the boosters to enable a greater refinance plan, but it clearly capability for the new heavy lift rockets. shows that it reduces risk in the first development mission is the gse portfolio to make some adjustments at least in the targeted for 2017 with additional flights following the h.a.r.p. program and they think after hearing all the panelists will get us on target to reach it sounds like there's almost an asteroid and even mars. universal belief that there is we believe the president's room to make changes there, so i request for the space launch think our collective objective of stakeholders has to be to system and the zero ron and multi-purpose cruelty hinkle in 2012 or at the appropriate continue those discussions with fhfa and the gse and hope they levels. and today, the administration do make the changes that are on has made a long-term commitment the margin that would be helpful to these critical deep space here, knowing even to the point, exploration vehicles. in addition to these building it may not have an extraordinary influence on stimulus, it will blocks, we are investing in the have some impact on the technologies to allow humans to 2.9 million families who would live and work in deep space eventually benefit from a. which will allow us to reach >> and the other observations destinations such as an asteroid anyone? >> i think if you look at the and mars.
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this is a great day for nasa cbo work of the assessment of dividing for nasa and the the boxer a isakson plan, fha -- nation, and i really do want to thank the bipartisan leadership fannie and freddie come out even at least to make a little bit of in the congress for getting us to this day. money on the deal. we, as i said, will answer reserve money on the market to market basis but it is important to point out i think that this detailed questions of the possibility of 11:40 but it's my fed is holding the securities to honor right now to introduce to maturity and they don't market their books. you senator kay bailey hutchinson for her comments. this is just an accounting loss. is nothing more than out so i >> thank you. think there are ways to do things here that don't cost this is the day that we've been taxpayers money at all, any looking forward to for a long money and i think this is one of time. i think it is no secret that we those things. yet, to strew fannie and freddie had hoped that it would be are going to take on some sooner because we didn't want to additional risks here. there are some cause here but they are also reducing their lose any of the efficiencies and credit potential for default and make sure that we didn't run up credit loss so net-net it looks the cost and necessarily. like it is a wash and maybe a i had a meeting yesterday with little bit of poor little bit general olden, with jack woo, down. the thing i would point out is that h.a.r.p. kids at school a four to 5 million borrowers and that is another 4 million senator nelson in which we really hunkered down on the borrowers to get the refinance timetable going forward because down and they go from the we do want to be on the same
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average coupon or the median coupon at fannie and freddie page and i have the commitment loan so you have half of the now from everyone that is in the borrowers over 5% and they can decision making process that i refi down to 4.25%. they save a little over a believe really are going forward now has one with one goal and percentage point and if you do the math that is $10 billion annual on interest payments. that is important to me that the that is not going to solve our problems but that is not insignificant. omb, the administration, nasa particularly those households and many of them aren't very and members of congress and be together and i think now from distressed parts of the country which could use that cash and everything that i've been told use that money. and the commitments that were made that we are. >> we would have to change i am very excited about this h.a.r.p. to what it is now. >> i mean fannie and freddie rocket system. through the fhfa would have to this is the piece that i believe make i think some modest adjustments. is going to be the true rollback the llp a's make adjustments in reps and long-term future. you can't have the pre-eminence warranties, look at underwriting in space that we have enjoyed and the cost of underwriting and over the past decades without appraisals. maybe even take change of policy bid and become a little bit more seeing beyond the immediate term goal, which of course is the proactive in reaching out to space station and making sure potential borrowers because right now they don't do that. that we fully utilize the space they reach out and say hey
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listen, you could make a saving station. that is the intermediate goal. on your monthly mortgage payment the long term goal has to be is due this. these are the things that are reasonable to do and i don't what's out there that we haven't think they are difficult to do discovered yet. but would make a difference. so, i don't want to raise the hopes that everything is going >> thank you. first of all i do agree with to go exactly in a box by an what dave said. while triple in terms of airline that has been put percentage of the consumption expenditures for consumers, it forward because we are pushing the envelope. we are going to the next is -- appreciate the help i'm sure. the one part of the cbo report iteration of space leadership. and this, today, i believe is that i have greatest respect for the cbo and particularly the commitment that america is professor lucas is i'm a little making to ensure that we are not squishy on the benefits of the gses from this program. going to be the also and. you know, i haven't heard from fannie and freddie are the fha we are going to continue to be a coming out with any positive world leader in finding out what statements regarding that respect. are the capabilities out there i'm a little nervous that it may that we haven't even discovered be overestimated. so i would actually make it more yet. is their something in energy, is in the decision do we really think it is going to help or worse avoid default and would it their something in national security, is their something in the geophysical on mars or on an actually helps stimulate the asteroid that would help us economy? i think those are the bigger selling points. kuran nurse? but again, i think that -- i
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so it is a great day for us on america. it is a commitment that nasa, like the appreciation rollback idea the best. nasa is going to lead the pack. >> i would observe a couple of we've commercial getting the things. when one we referred a little bit to the cbo report. i would cite private-sector crew to the space station. estimates from goldman sachs, that's great. jpmorgan, morgan stanley and we are committed to other parts at probe really structure a of our science in nasa, but the program that would generate 25 leader is going to be the launch to 50 million a year. the jpmorgan report came out system that is being announced after the cbo report. today, and the next thing that they respectfully disagree. i'm not sure it and everybody on senator nelson and autrey and wall street thinks that a senator boozman and congresswoman johnson, well-structured program would be as small as the cbo estimated. congressman hall, everyone who so i do think there is good reason to believe that this cares about the vision for america to lead in space is would have a much bigger stimulus on the economy than the going to be the timetable. the timetable for the contracts cbo suggested. i which is point out that 2002 to start being modified so that and 2003 the last time rates our experienced people will be fell like they have so far at this time, 85% of our worst that kept to help modify and design the vehicle that will take us could save 100 basis points on their loans took advantage of
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beyond earth's orbit. so the timetable will be what repaying over a two-year period. i'm looking for i want to see the cbo estimates that take a break even among the most the contract modify it right constrained households with 30%, away, and i am told by all of so i think the cbo estimate those who can make it happen that we are in fact weeks away predominantly on the take-up rate has been a bit conservative maybe one or two weeks away from relative to kind of other folks. i wouldn't go out and say i modifying the contract and think this can be a much bigger assuring that we are going to effort. the key is appropriately have the experience to take us structuring this and you rightly to the next level. so, i am very pleased to be here pointed out senator menendez that conservatorship is a real today, and a half really a new barrier to this. i think there are a number of beginning and that is what we ways to deal with that. have been looking for since the one of them as if is if it does look like this isn't so natural last shuttle came down as the new beginning and i think we have it today. to the gses as professor let me just say to my partner sanders has talked about, you here ben nelson. he gave me credit and i don't could raise the gses via little bit. know if the queen bee would be sorry, the guarantee fee a fee a little bit under such a program how i would like to be referred that would ensure it was a budget neutral program to other to, your highness. [laughter] but i want to say that senator parties and still benefit homeowners enormously. nelson and i, with great support so you know i think the other from senator boozman and senator
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thing that we haven't discussed that is really critical is rockefeller have been relentless mortgage insurance. there are a large number of people, estimated 25% of the in assuring that america's place population that won't even get inside the door without a deal in space would be continued, and to think about mortgage i couldn't ask for better insurance. they have to be brought into the partners and senator rockefeller, senator nelson and mix as well, importantly. senator boozman on our side. >> what about what i raise on they have backed us up all the the previous panel about the way, and i would also mention because we are going this week qrm's 20%. seems to me we take out a huge to the appropriations process class of individuals in the senator mikulski also has country who would be responsible brought in 100%. borrowers, and help us in this she and i are the chairman and ranking member on the process. their views on that mr. stevens? appropriate appropriations committee. >> i completely agree. i think that the intentions of we are going to march up tomorrow, and we are going to do what i think everyone will qrm were very dead on, applaud, and that is to assure inaccurate and effective in america's rightful place in both terms of eliminating products with high-risk characteristics science and space exploration. of the qrm as we all know thank you. requires limits to >> we get double the pleasure owner-occupied primary residence, fully amortizing because she's not only on the loans loans that are fully documented. senate commerce committee, she's
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when you look at the actual also the ranking on the cjes default data to those characteristics in and not in appropriations committee. not bringing the down payment we want to hear from the other requirement that is in the qrm members of congress to react you have solve 95% of the problems just simply by floating those characteristics. the problem with the down congresswoman eddie bernice payment when she threw that johnson is the ranking member of variable and is it becomes the house science committee. particularly punitive to families without amassed wealth >> thank you -- [inaudible] or high income earners. so it tends to hit those that need access to affordable homeownership the most. there is. thank you to the people here. first-time homebuyers, let me say mr. hall, who is african-americans, latinos, share of the science committee in the house, was unable to be traditionally demographics in the society they don't have large amounts of inherited here this morning. wealth and at least but we work in partnership as i demographically may be at the am their ranking member, and lower end of the income earning strong support of the space spectrum simply the way the program. incomes are structured in this and this is a very special day for us. country. we believe that you can because we are going into an implement a very safe and sound area just as we went into the qrm rule based on all the parameters but the loan-to-value area that we started -- requirement into being flirtation. we are going now to the next
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particularly punitive and is likely to send up some equal level. we know that what was done in the past has been the most but -- where a certain set of successful research in this country that we have invested americans go to fha for all their mortgages and then the wealthy get some other product in. what we have been confirmed through the qrm and that is something we are very concerned about this preserving our expertise and making sure that about as an organization looking at making sure this available the people who are training the liquidity for all americans who scientists and inspired our can responsibly pay for a home young people for the next level mortgage over the years to come. will remain in place. we are considered this somewhat >> i just wanted to mention one of a long time coming because we have known for some time that we thing, senator, if i could on have needed to take this step. your last question. i didn't respond to that on i'm we were simply waiting for the going to let the experts talk white house approval, and we about the mortgage side of it, were so pleased that the white but where fannie and freddie are house has joined us in where we concerned, i want to say that want to go, and we are very you know, i just don't think excited about this next phase. they know what to do, and that is why having you and our senate we know that research means exploring the unknown. and our congress is so we know what we've done in important. i think they really are trying exploring the unknown from the to, with the conservatorship bandwidth fhfa, are trying to past. we don't know what we will fight
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for the future, but we are figure out a long-term confident that we will find new profitable arrangement that will information that will clearly benefit the taxpayers. take the lives of our people are i can say that fannie and freddie both, have created around the world for the next level. so we are very excited about that and we are very pleased that administrator bolden kennon environments where they are reaching out to homeowners and a forward with his vision and will very unique way, using keep all of our very qualified counseling organizations, staff in place. setting up barro or help centers we want to thank them for what and mortgage health centers and they've contributed to the space really using people who can program already come and we want interact on a face-to-face basis with these homeowners and to thank them for being patient enough to wait until we can come influence their behavior, and to this level where we are now. really help the servicers on the backend to make a determination, we hope that we will be help these -- as to whether they successful in making sure that can keep their mortgage or not we can get the minimum at least and also help in the amount of money to go forward in transitioning. a lot of people are not going to be able to stay in their homes. a very vigorous and successful manner. what will happen to these and so, i am pleased to be here and i am also pleased to say families? someone has to deal with that, that other members of the and i just want to encourage you committee from the house as well and i thank them for being here
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and i am going to present to you and encourage fhfa in the gse and fha, you know the counseling now a senator who i work with a environment is so important very, very closely in the house because we are on the ground who worked share and ranking with these homeowners and member together on the subcommittee on transportation, homebuyers. we can convince them, we can work with them and we can help and neither one of us said more them to understand what they than we had to. should and should not do. we were pretty quiet, but we got >> very good, thank you. a lot of communication going coming and i want to present to mr. zandi. you now senator boozman from >> turning back to qrm, think the qrm is currently proposed is arkansas, my dear friend so that he can make remarks. overly restrictive for two reasons. >> thank you. one, dave said it nicely, if you thank you and i am very pleased look at credit risk and hire and very happy that we have a decision, and i think the key to that is because we have a ltd's or lower down payment, i decision now that will allow us think there is strong evidence to provide certainty and it's so that it makes perfect sense to allow for a lower down payment important especially as we seek loan but as you control for all to retain the best and brightest the other risk factors, it is as we move forward those perfectly reasonable to allow employees that will help us get for a lower down payment loan. to the next stage that we go to. the second reason, and this goes so i look forward to working to broader gse reform, if you with my colleagues and working
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with my colleagues in the house look at the fhfa data under the current rule, believe over time and the senate working with the administration said that again on average, only about a third we can work together as we build of all mortgage loans are a qrm, the infrastructure that we are going to need to take this as we and so in the future world where the gses are, we do something move forward in space, and most importantly, to keep the world about the gses, think that would be very restrictive and pre-eminence as being the leader in space as we move forward and would mean that governments role in the mortgage market would be maintained that has been such an very limited and i think that important part of our history, leads to all kinds of problems and i think you will be an with respect to the ability for important part as we move borrowers to get a 30 year forward into this next century. fixed-rate mortgage in the cost of credit to borrowers. thank you. i think a more reasonable goal would be something closer to two-thirds of mortgages and if >> it's important to underscore you adjust the ltd requirement the administrator's comment about the work force. allowed for lower down payment, this is the most skilled work you can i think quite reasonably get to two-thirds of the market force that is a national asset and i think that is a much more to this country, and with a reasonable goal not only with respect to what is happening now but long run in the mortgage phase out of the space shuttle market and governments role in the mortgage market. >> just to add to what dave and with the building of the mark said, you could ashley go
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commercial rockets skilling at to the fha web site and they as the space taxi and then now actually have the listing of the date and what loans are on qrm and it is very restrictive. with the big rocket, the monster again and although well-intended rocket being set and the legislation dodd-frank in terms contracts as said within a week of mortgage lending, does represent those represent a clear present danger to the future of the housing market. the contracts be modified you will see that workforce then it is way too restrictive. >> we seem to have a universal start to select so that there is agreement on that. i hope those that are going to make the decision are listening. not just the precipitous drop mr. merrimac let me ask you a few final questions and i will that you phase from one right let this panel go. into the other. that is most important to all of how does your refinance proposal us and to the president and the differ from boxer and isakson's administrator made that comment legislation? if you could give me some sense in his opening line and i just of that? wanted to underscore it. we are pleased to have >> sure. i will just pull up my notes here. so i think there are several things as i commented earlier. congressman chaka fattah. mortgage insurers are really a big issue that i think we need he's the ranking member on a cjs to address. the mortgage insurance industry almost all the companies are subcommittee on the house.
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congressman? rated single b. >> thank you, senator. i'm not sure their insurance is as good as we would like to well, the general said he was count on as we do now, so we are going to have to deal with a proud to have flown a few of large number of potential folks special commissions. he actually commanded two of who have mortgage insurance and them and he is commanding nasa i think there are ways to do it but that is going to be one key in a way that i think today you see the decision package come issue. together, and as an and refs and warranties as a appropriators, i know that we related issue which gets to the are pleased to see that they mortgage insurance question. those issues i think are really authorize this and the administration have come to an holding back a lot of people from being able to participate in h.a.r.p. and if we don't agreement that clearly address them i don't expect that identifies the president's goal we are going to get the take up that we should. having us move from, you know, i think also trying to take steps to bring down closing exploration in terms of the costs is important, and i think low-earth orbit to deep space we have to take seriously what the cost is to the gse and the two mars as the target and this embrace on the commercial balance sheet. program is very important. ipod the congressional budget i am making now this decision office for having looked at that but i do think one may need to around the launch system and adjust the guarantee fee a little bit to help adjust to really positions nasa to move forward aggressively and i want ensure that discourse is a to thank the administrator for budget neutral program from a his leadership. i know that some of the on the congressional budget office.
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but i do think there is some hill can be challenging, but chance that a legislative solution would succeed, where we may or may not succeed with an this is rocket science we are administrative particularly some of the parties involved are dealing with. it is somewhat complicated for holding up the process. those of us in the political i don't think by the way there is discussion on the earlier realm, but we do want to make sure that our country leads and panel on second liens. i'm not sure that recent ordination of second lanes is we have fled in an absolute way actually big problem today. i think most of the major we know that we have others here that have joined this effort in lenders do see it in there just to have a lower payment on the terms of space exploration but first lien so i'm not sure that is the biggest issue. we intend for america to be i think it is in other areas. number one, and we know as appropriators we can't do that on the cheap. speak, one question mr. stevens it will cost money. while i have you here. we are going to have to invest money as a nation to continue to it is a question related to your tenure as the commissioner of lead the world and as an appropriators it's always helped the federal housing administration. as i understand fhfa is required to have guidance from the of the to have a capital reserve ratio writers and to have an agreement, at least we are not of 2% and for the past two years working at cross. as a i want to thank senator the fha's capital reserve has hutchison and my good friend, been below that figure, so given senator nelson who himself that number and fha's critical serves in a different capacity role in the housing market are
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you confident that it can at the previous time for the continue to be a source of leadership along with my funding for low and moderate income borrowers? >> well, as you said senator colleague from texas, congressman johnson who has done other members of the panel have such a great work in the science said there is a critical -- education in iraq and on behalf particularly first-time homebuyers and most data shows of nasa. thank you. that in the first-time homebuyer market fha is making up the vast majority of those -- of the >> let's take a few questions. funding because because the loan-to-value requirement. mindful of the levantine kofi the other variable that would highlight his fha is one of the detail president of the ability few entities in the housing for the technical details. finance system that has operated yes, sir. entirely on its own ability within its own capital. ever that capital did drop below >> can you talk about how difficult it may be in this budget environment for not just the threshold of 2% on the capital reserve ratio, and the this year and next year but actuarial studies over the last couple of years have expected beyond, how will that be? that the capital ratio would grow and there would actually >> the question is the difficulty of the funding on a going forward basis. been net receipts negative subsidy is over on the budget side. but all of that assumed that the this is why the president wanted to make sure that the all of home price index would show some growth, which is the flattening
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of that index as continue to their t's crossed and i is extend out-year after year and so despite a variety of dotted so that he would be able issues -- measures that have been taken under particularly to present this budget and then secretary don evans administration with raising mortgage insurance premiums, up defend it from the to three times changing the administration's standpoint. underwriting requirements putting minimal ficus course in will that be tough times going place changing terms and many forward? of course it is. lenders that were not we are in an era in which we originating responsibly are still subject to the economics of the housing system. have to do more with less all i have no inside information obviously. i've left it in this region but i'm concerned that given the across the board, and the competition for the available softness in the housing market dollars will be fierce. and the seasoning of somebody's big portfolio like the 2009 but what we have here now are portfolio and another potential impact from the reverse mortgage the realistic costs that have program that there may be some been scrubbed by an outside impact to the capital reserve independent third-party in their ratio and i would hate to see it go negative, but you know the study of nasa after nasa good news about the program is presented its numbers to the ad operated under the full faith and credit of the u.s. treasury but i'm certain it will bring fenestration to the budget
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extraordinary criticism and focus should should've dropped director, and so they have scrubbed these costs and they negative. if a study comes out at the end think they are realistic and of the fiscal year that ends at they think this is achievable if the end of september, usually somewhere early in november so i am anxious to see how that fund america is going to have a human space program. is doing given all the additional stresses that have occurred in the housing market i can tell you in the bosom of over the last 12 months. every american there is a >> i am anxious as well. we will have to make sure we pay attention to the report. yearning for us to explore the thank you called for your input, heavens, and what you see over your expertise. the next five or six years is a i appreciate all of our budget coming forth from the witnesses sharing their insights administration of about 3 billion a year for this today. i think the testimony here can be very useful in exploring both system. do we think that we can maintain that? problems that homeowners face in the answer is clearly yes. refinancing and restructuring their ways and potential actions we can take. >> let me speak to that as well because as ranking member of the the record is going to remain committee that is writing the open of this hearing for a week from today if any senators wish budget, i would see a very to submit questions for the strong bipartisan support. record. thanks to the committee and this hearing is returned -- nasa in its key role and the
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adjourned. administration has set [inaudible conversations] priorities will be this space launch system and the commercial system for the interim term and [inaudible conversations] the telescope and when we set those priorities i believe we will get the funding. i would use this as an example even some of the strongest [inaudible conversations] budget cutters have put forward massive cuts. they haven't cut the commission of nasa, because they see that as part of the american spirit, [inaudible conversations] and most certainly part of the american economy and america's's national security which we cannot afford to be, we cannot afford to be in second place. in an election marred by moral scandal and political >> senator hutcheson, you and senator nelson had a press corruption, james g. blaine lost release last week that somebody
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in 1884 but he change political history. he is one of the 14 men featured was undercutting the u.s. space in c-span's new weekly series, the contenders, live from the program and you have an ongoing blaine house in augusta, maine investigation to the delay in tonight at 8:00 p.m. eastern. delivering this. learn more about the series in with that investigation continue their upcoming programs at and are you satisfied now? contenders. >> i think that we certainly the committee and senator rockefeller and i will discuss the investigation, and if there are parts of it that we need to close we will talk about that. i haven't been privy to exactly where they are we have been frustrated. i think that is no secret by the time delay. i have felt that there was some effort underneath somewhere to delay until it was too
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extensive, and it came to the head when there was a week that issued hypothetical set of circumstances which would double the cost of this space launch system committed no one ever suggested the hypothetical, and yet it was reported as my gosh the white house has sticker shock and that brought it to the head because nothing was factual .. and that's when senator nelson and i just came out pretty forcefully saying this is sabotage. so i think that now that the administration has come forward everyone is on the same page on the numbers they are within the authorization levels, and i think that we are now moving forward as a team for america and that is where we want it to
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be. so, sometimes the making of the sausages and pretty, but we are at the right end, i hope. good morning. but we are still -- we still have to see the timetable. we are about -- the we have to assure that everybody administrator of nasa, charlie is working as enthusiastically bolden, is announcing the most powerful rocket in history. for all the priorities, and when the administration is coming the dissatisfied i fink we will forth with a plan to flush out be in good shape. what was passed in the nasa >> thank you very much. authorization bill a year ago. >> we will see you at 11:30. it's a plan forward, keeping the international space station alive until what least 2020, with a series of commercial rockets taking crew and cargo to and from the space station, then allows nasa to get out beyond
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low earth orbit and start to explore the heavens, which is the job that nasa has always been tasked to do. this rocket is coming in at the
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